How To Get Your Tax Refund In Latvia? [GUIDE]

Do you think getting your income tax refund in Latvia is very hard and not worth the hassle? Good news! Latvia most probably owes you a few hundred euros, and you can file the annual tax return online in just 5 minutes (true story)! 🤑 In this article, you’ll learn if you qualify for income tax refund and how to get your tax refund in Latvia easily.

DISCLAIMER: I’m not a financial advisor (yet! 🔥) and the following is not a substitute for independent professional advice. Use the following guide only if you’re not required by law to file your annual income tax return in Latvia.

You’re most commonly required by law to file your annual tax return in Latvia if you:

If it turns out that you are required by law to file your annual tax return in Latvia, then stop reading this guide now and consult a tax consultant!

Ping me if you need a tax consultant.

Eligibility For Income Tax Refund In Latvia

You’re eligible for income tax refund in Latvia if you are employed by a Latvian organization (both for-profit and non-profit) that pays the full monthly flat rate income tax on your behalf. Microenterprise and (solely) dividend/capital gains taxpayers are NOT eligible for income tax refunds.

If you’re eligible, you’ll get 23% income tax refund. Paid €100 for the dentist or professional training (not only higher education)? That’s a €23 tax refund for you – cash!

Types Of Expenses That Increase Your Tax Refund In Latvia

Typically, tax refund happens when your employer withholds too much of your income tax in Latvia on your behalf (this is thankfully calculated automatically). In this case, you don’t have to list any expenses or upload receipts – the tax refund will already be calculated.

The following expenses get you an income tax refund:

Higher education and professional training in EEA countries (not only Latvia)

You can list these expenses on your tax return and get a 23% income tax refund (that is if you haven’t thrown out the receipts). If you haven’t saved any receipts for the mentioned expenses, it is never too late to start.

Don’t get too excited, because there is a cap on the maximum tax refund (calculated automatically).

Step 11: Click Submit

Step 12: Make sure that tax returns for years 2014, 2015, 2016 are submitted as well, if not – go to Step 1 and repeat for all!

Even if you don’t have any expenses that qualify for a tax refund, file the tax return to get back the income tax your employer has overpaid on your behalf.

Step 13: Start planning how you’ll spend your tax refund! 🤑

Tax refund typically is paid to your bank account in about a month but it can take up to 3 months (there’s a law for that).

That’s it! It wasn’t that hard, was it? 😎

Finance gurus will tell you: pay at least 50% of your (unplanned, I’d say?) tax refund to the highest-interest loan you have (if any). If you don’t have any loans, then save at least 50% of the tax refund.

How was it? Share your experience in the comments below!

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